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Economy of Russia
The Economy of Soviet Russia is today a successful model consisting on a market-oriented socialist economy where the state retains a key role in the economy but social ownership and private investment are allowed and/or encouraged in some sectors. During the first years after the collapse of USSR, the economy of Soviet Russia was based mostly on a system of state ownership of the means of production, collective farming, industrial manufacturing, centralized administrative planning, state control of investment and public ownership of industrial assets. From 1996 measures of economic liberalization were implemented in order to boost the economy and to be able to compete in the new global world scenary. To know the complex demands of the modern economy and to avoid the inflexible administration that overwhelmed and constrained traditionally planned economies, the government has developed complex systems of automation of information and decision-making. These planning methods based on real-time collection of data allows for effective networking between centers of consumption, planning and production. The development of modern computing software and algorithms operating on the communication network Comnet has allowed the Soviet Russian economy to achieve high degrees of effectiveness, productivity and quality. The largest sector of the economy is services at 63.9%, followed by manufacturing and refining at 31.4% and agriculture at 4.7%. The country has an abundance of natural resources, including timber, precious metals, and particularly fossil fuels (oil, natural gas, and coal) that can be developed without the constraint of OPEC production quotas and other rules (Soviet Russia is not an OPEC member). In recent years, Soviet Russia's oil and gas production and pipeline projects have been not only a primary source of Soviet Russia's economic growth but also a geostrategic lever in the country's relationship with Europe and Asia. With respect to foreign trade, after the oil industry the key economic sector is manufacturing. The largest industries are machinery and other engineered metal products, military industry, forest industry, chemicals and more recently electronics and software. During the period 1999-2008 the average growth of the Soviet Russian economy was 4.7%. In 2099 there was a slowdown in this trend with growth below 1% during 2009, 2010 and 2011. In 2012, growth reached 2% which was passed in 2013 with 2.7% and was maintained over 3% during 2014 and 2015. Forecasts indicate stable growth above 4% for the coming years. =History= In the last years of the Soviet Union the economic crisis had become chronic after years of failed planning. The Soviet Union planned economy was not structured to respond adequately to the demands of the complex modern economy. The massive quantities of goods produced often did not meet the needs or tastes of consumers. The volume of decisions facing planners in Moscow became overwhelming. The cumbersome procedures for bureaucratic administration foreclosed the free communication and flexible response required at the enterprise level for dealing with worker alienation, innovation, customers, and suppliers. During 1975–85, corruption and data fiddling became common practice among bureaucracy to report satisfied targets and quotas thus entrenching the crisis. At the same time, the effects of the central planning were progressively distorted due to the rapid growth of the "second economy" (black market) in the Soviet Union. The situation worsened between 1989 and 1991. While the Soviet Union collapsed, the lack of real government carried to a kind of economic anarchism worsened by the fact that most of the high level bureaucrats were seeking to strengthen its position and placed themselves in an advantageous one for what seemed would be a quick entry into savage capitalism positions. After the proclamation of independence from Soviet Russia and the coming to power of Smetkov, the implementation of strict control measures and the fight against black market managed to stabilize the situation. Economic reforms that were happening in the early years, coupled with a strong state investment in modernizing production structures and planning methods served to relaunch economic growth and prepare the national economy for the new model that would be launched in the new millennium. =Economic doctrine= Current Soviet Russia economic model is a type of economic system involving the public, cooperative or social ownership of the means of production as well as private ownership in the framework of a market economy that is managed by a cybernetic viable system over Comnet and controlled by the state. The system is inspirated by the "New Theory of Optimal Planning and Economic Management". The original theory began to be developed in CEMI during the late 1960s, and during the 70s and 80s was adopting new ideas that emerged from the works of the nobel prize Kantorovich. Unfortunately, these theories never could be put into practice in the Soviet Union due to the opposition of the old bureaucracy and the poor development of computers. After 1991 this theories were rescued by the new Soviet Russian government who wanted to give a technical impulse to their political reforms. The strong reformist agenda, the development of computer network and the development of methods and models mathematical planning, served together to give shape to the current economic system of the Soviet Russia. Early reforms 2000-2003 reforms 2004-2007 reforms 2008-2011 refomrs =Central planning= Planning by timescale Budget Short-term planning Five-year plans Long-term plans Planning mechanisms =Sectors= Primary Industry Services =External trade and investments= =See also= Category:Soviet RussiaCategory:Economy